BURLINGTON, ON, Sept. 2 /CNW/ - EnGlobe Corp. ("EnGlobe" or the
"Company") (TSX:EG), provides this Default Status Report pursuant to the
requirements set out in Canadian Securities Administrators Staff Notice
57-301.
EnGlobe announces that, as a result of increased time required to
complete its interim unaudited financial statements and management discussion
and analysis for the quarter ended June 30, 2008 (the "Statements"), there
continues to be a delay in filing of the Statements as required by National
Instrument 51-102 Continuous Disclosure Obligations.
In accordance with the applicable securities legislation, EnGlobe
notified the Canadian securities authorities of the late filing of the
Statements. Due to the late filing, EnGlobe's securities may become subject to
a general issuer cease trade order issued by the applicable securities
regulators. The Company, however, on August 14, 2008, issued a Notice of
Default (the "Notice of Default"), according to CSA Staff Notice 57-301, and
made an application to the applicable securities regulatory authority
requesting a management cease trade order (the "Management Cease Trade Order")
in respect of the late filing of the Statements. In response, on August 18,
2008, the Ontario Securities Commission (the "OSC") granted the Company a
temporary management cease trade order (the "Temporary Order") for a period of
15 days. The Temporary Order affects only the directors, officers and insiders
of the Company and does not affect the ability of persons who are not
officers, directors or insiders of the Company to trade the securities of the
Company. If after the period for which the Temporary Order was issued the
Statements have not been filed, the OSC will determine if a Management Cease
Trade Order should be issued. If granted, the Management Cease Trade Order
would affect only the directors, officers and insiders of the Company and
would not affect the ability of persons who are not officers, directors or
insiders of the Company to trade the securities of the Company.
The Company is delayed in finalizing the Statements primarily because of
non-cash accounting issues that arose late in the second quarter. Management
requires additional time to finalize the Statements. Management expects to
file the Statements as soon as practicable after the completion of the
required work and in any event no later than October 15, 2008, which is the
date that is two months after the original filing deadline for the Statements.
EnGlobe will announce any changes in this timeline as preparation of the
Statements progresses. There are no other changes in the status of the
Company. The securities regulators may impose an issuer cease trade order if
the Statements are not filed by October 15, 2008.
Further to the news release issued by EnGlobe on August 12, 2008 and the
Notice of Default, in accordance with CSA Staff Notice 57-301, EnGlobe
confirms that:
1. There have been no material changes in the information contained in
the Notice of Default.
2. EnGlobe has not failed to fulfill its stated intentions in its Notice
of Default to file the Statements no later than October 15, 2008.
3. There are no actual or anticipated defaults of financial statement
filing requirements subsequent to that disclosed in the Notice of
Default; and
4. There is no other material information concerning the affairs of the
reporting issuer that has not been generally disclosed.
Management wishes to confirm to its shareholders and other interested
parties that the Company is not subject to any insolvency proceeding, there
are no issues with regards to finalizing the filing of the Statements and
there is no other material information concerning the affairs of the Company
that has not been generally disclosed. The Company fully expects to file the
Statements prior to the respective deadlines for the filing. Furthermore, the
Company confirms that it intends to satisfy the requirements to provide
Default Status Reports so long as it remains in default of its requirements to
file the Statements.
EnGlobe Corp.
EnGlobe Corp. is a leading international integrated environmental
services company specializing in the management of organic-based waste streams
and contaminated soils, with an emphasis on beneficial reuse. EnGlobe offers
cost-effective solutions to municipal, commercial and industrial clients in
Canada, the northern United States, England and France through its
subsidiaries: Biogénie S.R.D.C. Inc. and Celtic Technologies Ltd. for site
assessment and remediation, GSI Environment Inc. for organic waste management,
and Tanknology Canada Inc. for tank testing and calibration.
EnGlobe shares are listed on the Toronto Stock Exchange under the ticker
symbol EG. Additional information is available at www.englobecorp.com.